In this article, we’ll try to explain why the SPDR S&P/ASX 200 Resource Fund ETF (ASX: OZR) and Vanguard Global Minimum Volatility Active ETF (Managed Fund) ETF (ASX: VMIN) are two ASX ETFs worth taking a look at in FY21.
Some things you should know about the OZR ETF
The SPDR OZR ETF invests in resources companies from within the ASX 200 and aims to track the S&P/ASX 200 Resources Index.
According to our most recent data, the OZR ETF had $110.84 million of money invested. With OZR’s total funds under management (FUM) figure over $100 million, the ETF meets our team’s minimum investment criteria for FUM levels. As a general rule, our team draws the line at $100 million for ETFs in the Australian shares sector because we believe that, relative to smaller ETFs, achieving this amount of FUM lowers the chance that the ETF issuer will close the ETF.
Like the look of the OZR ETF? Grab our ETF free investment report.
The VMIN ETF – a quick look for savvy investors
The Vanguard VMIN Fund is an actively-managed ETF which aims to provide lower volatility than the broader global equity market by investing across many markets and industries.
With our numbers for Dec 2020, VMIN’s FUM stood at $12.61 million. Given it has less than $100 million invested, ask yourself (or your adviser) if the ETF is still too small (and if you should wait to buy into it). If you’re concerned the ETF might not be established enough, compare it alongside one of the other Multifactor sector ETFs, using our full list of ETFs.
Are the fees for the VMIN ETF bad?
Vanguard, the ETF issuer, charges a yearly management fee of 0.28% for the VMIN ETF. Meaning, if you invested $2,000 for a full 12-month period you could expect to pay a base management fee of around $5.60.
The management fee is above the average for all ETFs on our list of ASX ETFs, but keep in mind the ETF may be able to justify the higher price tag with superior performance over time.
The Vanguard VMIN ETF might be one idea for the watchlist but before you go any further, click here to get our full ETF review – it’s free.